UTSCH LANKA (PVT) LTD., AND ANOTHER VS. DEPUTY DIRECTOR OF CUSTOMS AND OTHERS

UTSCH LANKA (PVT) LTD., AND ANOTHER VS.
DEPUTY DIRECTOR OF CUSTOMS AND OTHERS

COURT OF APPEAL
SRISKANDARAJAH, J.
CA 82/2007
JANUARY 12,2011
FEBRUARY 25,2011
APRIL 1, 4, 2011

Customs Ordinance - Section 47, Section 51, Section 52 - Willfully failing to classify goods - Misdescription - Non declaration of royalty -Is it undervaluation?

Erich Utsch AG - a German Company - entered into an agreement with Commissioner of Motor Vehicles for the delivery of retro reflective number plates with embossed number and 3rd number plate sticker for windscreen for a period of 5 years. The 1st petitioner company was incorporated in Sri Lanka to facilitate the above agreement. Erich Utsch AG as the licensor granted an exclusive right to the 1st petitioner to use the necessary technology, expertise and to obtain training required by the 1st petitioner as licensee. The terms and conditions included a payment of a Royalty Fee of 10% per annum of the total turnover. A building belonging to the Commissioner of Motor Traffic was given to the 1st petitioner for the storage of imported blank plates and to embos

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